Mahesh Kodumudi, president and managing director of Volkswagen India Pvt. Ltd., also said the company could increase its India plant capacity to 200,000 cars a year from 130,000.
Volkswagen is evaluating manufacturing engines in India, Kodumudi said.
The company on Tuesday launched a revamped model of its Polo hatchback. Volkswagen's market share in India fell to 2.1% for the fiscal year ended March 31 from 2.46% a year ago, according to data from an industry body.